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How to Prepare for a Margin Call Before Market Volatility Hits
Handle temporary salary delays without redeeming long-term investments.
A margin call occurs when your LTV exceeds the lender's limit, typically 60%. If your ₹10 lakh pledged equity drops to ₹8 lakh, your available loan reduces from ₹5 lakh to ₹4 lakh. Maintain a 15% margin buffer. During market dips, proactively repay part of the principal or pledge additional units before the lender freezes the account or initiates forced liquidation.